Bank of Baroda cuts interest rate for deposits below Rs 1 crore for a select maturity

Bank of Baroda (BoB), the state-owned lender, has revised downwards the interest rate for deposits below Rs 1 crore for a select maturity bracket.

"The Bank has decided to revise rates of interest payable on Domestic Term Deposits & NRO Deposits of below Rs 1 crore, applicable to fresh deposits and renewal, with effect from March 24, 2015. The applicable rate of Interest in the maturity range of 181 to 270 days has been reduced from existing 7.75 per cent to 7.65 per cent," the public sector lender said in a Bombay Stock Exchange (BSE) filing.

For all other deposits, no change has been made, the bank said.

Bank of Baroda scrips traded at Rs 170 apiece on BSE, down 1.68 per cent from previous close.

In a surprise move earlier this month, the Reserve Bank of India (RBI) had cut the key repo rate by 0.25 per cent to 7.50 per cent.

The central bank in January too this year, had cut the repo rate by a similar margin to 7.75 per cent.

Repo is the rate at which the central bank lends to the commercial banks.

However, banks have so far have not passed on the benefit to their customers and have mostly stayed away from brining interest rates lower.